Time is money and it is more expensive than expected

opinion expressed by entrepreneur Contributors are yours.

How many times have you heard the phrase “time is money”? Or some version of the statement: “Time is the most valuable thing in the world?”

Have you ever stopped to think about what those statements mean? And if they’re authentic, why do so many of us still waste so much time doing things that aren’t necessary?

Every moment counts when you’re an entrepreneur, and it always seems like there’s never enough time in the day. The world is moving faster than ever and we need to focus on many places at once. We have to be more protective of our time than ever before. We’ve already seen this with actions like skipping initial company meetings, setting limits on your working hours, or using your free time more productively.

Again: everyone. another. It matters.

time value

Have you really thought about the value of your time? Better yet, how would you change your daily habits if you knew how much it was worth? You can break it down into a simple equation like many things.

Let’s start with the basics and work through an example.

You have two types of time: productive and leisure.

To understand productive time, let’s say your salary is $100,000 (anything on this will cost you roughly Rs. top 24% of earners in America). Then let’s take the average amount of hours worked in a year at 2,080 – about 40 hours for 52 weeks of the year, excluding holidays, sick days, etc. In this scenario, you are worth $48 per hour.

Now you want to set yourself a future goal – let’s say you are 150% ahead in life in the present. So we apply a multiplier of 1.5x, which takes us to $72 per hour. This is your productive time.

And then it’s leisure time. No matter how hard we try, we can’t be productive 100% of the time. So we have to keep track of leisure time as well. Think about it whenever you are resting or not progressing in your earning potential. Using the same equation, we discount our time by 40%, which puts us at $29 an hour.

real life examples

still with me? Let’s look at some real life scenarios to put this in perspective.

productive time

We all have those meetings on our calendars we’re afraid to go to and “waste of time.” well, how do you know? Usually there are already a lot of people in those meetings. Let’s assume that seven attendees earn $100,000 a year. That hourly meeting is costing the company $504. If you don’t think the discussion is worth it, I couldn’t think of a better way to convince management that it costs the company more to keep it.

free time

Have you ever watched an entire season of a popular show? Let’s take “Game of Thrones” for example. Using your equation, if we count this as our leisure time, the total GOT length to watch is about 71 hours. Using our free time calculation means that it would cost us $2,100 to manage the entire show. Whereas, if we use this time for productive means, the total value will reach $5,112.

related: 5 ways to make more time for your small business

Seeing numbers presented in this way is a wake-up call. If a friend insists you see a great new show but it will cost $5,000, will you do it?

The only thing that has changed in this scenario is that someone has forced you to put a monetary value on the activity. Once you have trained your brain to look at the matter, then you experience a turning point. So how can you convert cost of spending into investment in growth?

it’s time to change your perspective

Often people think, “I want to do more with my life,” or “Am I reaching my potential right now?” We challenge ourselves with these questions, but the answers are always hard to find. We struggle to find a way to link these ideas to measurable actions.

When we can price something, it naturally has more value than something without any charge. The old saying goes, “Price is what you pay, value is what you get.” Without price, one can assume that the value is zero.

Ultimately, it becomes more expensive when we can look at the financial value of time, which is more a matter of how you use it. I became so infatuated with the idea that I built software for myself that calculates the value of my time and applies it to everything in my personal and professional calendars. Do I recommend it to everyone? Not necessary, but I recommend finding your balance. After all, no two people are exactly alike, and no two people can value their time equally.

Don’t Customize, Prioritize

If you think this all sounds a bit awkward, don’t fret. Life can’t be all business, and you have to make room for joy in life’s unexpected moments. Spending time for yourself outside of growth and productivity is essential because being too selfish with your time makes you lose life’s most precious memories.

Trying to plan out every last minute of your day is a common pitfall some might describe as toxic productivity. While a date night now may cost a lot, what if that date is your future spouse who quadruples your time in the future because you are the happiest person now?

In the same way, what about that recurring meeting? Yes, it may be costly, but it may have generated an idea that could drastically change the direction of the company. Life is about making decisions that feel right at the moment. You can’t constantly optimize, but you can start prioritizing where the real value is.

related: Time Management Hacks That Most Successful People Practice Every Day

make change

When was the last time you watched a TV show, spent hours on video games, or watched an entire season on Netflix? Maybe recently, right? Then ask yourself again, when was the last time you said: “I wish I had time?” Again, probably recently.

But ask yourself this: What could be different if I not only started thinking about the value of time, but what if the world did? Just imagine how many new technological innovations we will see. Imagine a more productive, healthier society.

Like anything, change in life must begin with a new habit. It’s hard to get started, but repetition makes everything easier, rather than something people think about value and productivity. Waves can become tidal waves. We can make a meaningful difference in our lives and the world around us by re-establishing our relationships over time.

Remember, time is money, and nothing is more valuable than time. Now is the time to start treating it as such.

RELATED: Time is money. Where are you spending your money?